J&J Plans for the Future by Trimming Pension Benefits for New Hires

In its latest step to cut costs, Johnson & Johnson will reduce pension benefits that are offered to employees who are hired – or rehired – after Jan. 1, according to an internal memo.

The changes, which do not apply to existing employees or retirees, were not detailed, but reflect the way the “benefit landscape has continued to evolve in recent years,” as well as “emerging trends” in employee career patterns and practices at competitors, writes Peter Fasolo, the J&J worldwide vice president for human resources.

The move comes even as J&J, which sells a wide array of prescription drugs, medical devices and over-the-counter health products, continues to improve its financial performance, notably its pharmaceuticals business.